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Dosa batter, custard powder, kitchen lighter may see cut in GST

Many businesses are deregistering their brands to avoid the GST

Press Trust of India  |  New Delhi 

Cube, GST
Cube, GST

A number of daily use products ranging from idli/dosa batter to kitchen gas lighter may cost less as the Council is considering lowering rates on these items.

rates on over two dozen products are being sought to be lowered by the Council after anomalies in their fixations were pointed out, official sources said.


To deal with businesses that are deregistering their brands post to avoid taxes, the fitment committee has proposed to the Council to consider May 15, 2017, as the cut off date for considering as a registered brand for the purpose of levy of GST, irrespective of whether or not the brand is subsequently deregistered.

A final decision in this regard would be taken by the Council, headed by Minister and comprising representatives of all states, at its next meeting on September 9 in

Unbranded food items are exempted from GST, whereas branded and packaged food items attract 5 per cent rate. Hence, many businesses are deregistering their brands to avoid the levy.

Sources said that the Fitment Committee has approved new rate structure of over two dozen items and forwarded the proposal to the apex decision-making body.

The Council in the August 5 meeting considered and approved lower rates for some of these items and the remaining will be taken up in the next meet on September 9, they said.

Sources, however, could not state the items on which the rates have been lowered.

They said on dried tamarind has been proposed to be lowered to 5 per cent from 12 per cent currently and so will be the case in roasted gram.

Custard power would attract 18 per cent as against 28 per cent currently while idli/dosa batter would be charged with 12 per cent against 18 per cent currently.

Oil cakes would be charged with a uniform 5 per cent irrespective of end use as against present practice of nil rate on oil cake for animal feed.

on dhoop batti, dhoop and other similar items has been proposed at 5 per cent, down from 12 per cent at present. This brings dhoop batti at par with agarbattis which attract a 5 per cent rate.

Plastic raincoast, rubber bands, rice rubber rolls for paddy de-husking, computer monitors and kitchen gas lighters would see being lowered from 28 per cent to 18 per cent.

on corduroy fabrics is to be lowered to 5 per cent from 12 per cent currently and the same is to be done for saree fall. on textile caps is to be lowered to 12 per cent from 18 per cent and that on idols made of clay to 5 per cent from 28 per cent currently.

Brooms and brushes would be tax-free as against 5 per cent levied currently while rosaries and prayer beads would be charged with 5 per cent as compared to 18 per cent now.

Hawan samagri would be charged with 5 per cent as compared to nil now.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Mon, August 07 2017. 21:51 IST
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